Despite late spring, it's all ahead flank!

The sound of boots, hammers, drills and helicopters is starting to drown out the sounds of "we are planning," "we hope to" and "later this year" that we've been hearing for the last few months. Despite a late spring through most of Alaska, a number of projects kicked off recently and more are gathering steam as the short, hectic Alaska summer season approaches. Companies counting on an early spring due to Global Warming have been disappointed and Plan B options are being formulated however, the end result will be the same: all ahead flank!

Western Alaska

Full Metal Minerals has entered into an agreement with Royal Pretoria Gold Ltd. to acquire a 100 percent interest in the Inmachuck gold property near Deering on the Northern Seward Peninsula. In 2002 Royal Pretoria discovered an 1,800-meter-long, northwest trending gold-arsenic-antimony soil anomaly in the vicinity of placer gold-producing streams. Soil results ranged from trace to 735 parts-per-billion gold, with an average of 28 parts-per-billion gold. Of these, 22 samples assayed over 50 parts-per-billion gold and eight assayed over 100 parts-per-billion gold. This anomaly appears to be spatially associated with a northwest trending topographic linear.

Follow-up work in 2005 resulted in discovery of one quartz float sample from Nelson Gulch, down-slope and to the southeast of the soil anomaly. This sample returned 0.223 ounces of gold per ton including 37 ounces of gold per ton in the plus-150 mesh size fraction.

Full Metal has an option to acquire a 100 percent interest in the property by incurring a total of $1 million in exploration expenditures over four years and making cash payments totaling $250,000 over four years, with a one time cash payment of $500,000 upon completion of a bankable feasibility study. If Full Metal exercises the option, it agrees to pay Royal Pretoria a 2.5 percent net smelter return royalty on all commercial mineral production, with a right to purchase one-fifth of this royalty (0.5 percent) for $500,000 at any time.

A surface exploration program of additional soil sampling and mapping is planned for June, to be followed by trenching and possibly diamond drilling.

Linux Gold Corp. announced additional details pertaining to its planned $1.5 million exploration program on its Granite Mountain project on the eastern Seward Peninsula. Plans call for additional grid soil sampling on the Gossan Ridge, Peace River and Saddle prospects and geological mapping. Diamond core drilling is planned at the Gossan Ridge sub-volcanic gold-silver-copper prospect, the Saddle vein lead-zinc-silver prospect, the Quartz Creek plutonic gold-copper-bismuth prospect and the Peace River plutonic molybdenum-copper-gold-uranium prospect.

An additional hole will be placed in the cupola of the Quartz Creek pluton to investigate the volcanic thermal contact zone overlying the intrusive.

Pacific North West Capital Corp. acquired an option from Calista Corp. to acquire 100 percent working interest in the Goodnews Bay platinum project in southwest Alaska. Previous placer operations in the streams draining the project area produced approximately 600,000 troy ounces of platinum. Pacific North West's exploration efforts will focus on the lode source of the alluvial platinum mineralization.

Previous work has included several methods of airborne and ground geophysics, geologic mapping and rock and soil sampling which have delineated a number of exploration targets. Zones of anomalous platinum (up to 1.3 grams of platinum per tonne) were delineated at Susie Mountain by soil sampling and are coincident with magnetic highs and resistivity lows detected by geophysical surveys. Geophysical surveys also delineated deep electromagnetic anomalies at Red Mountain where up to 3.3 grams of platinum per tonne were detected in soils.

Under the agreement Pacific North West is required to make cash payments of US$300,000 and incur exploration expenditures of $1.95 million over the next five years. After completion of $1.95 million expenditures Pacific North West shall have a grace period of two years without obligation to perform additional work commitments, after which it will be required to expend a minimum of $700,000 per annum, until a feasibility study is completed.

Upon completion of the feasibility study it shall have no further work obligations for a subsequent period of four years.

Upon completion of a feasibility study and until such time as the commencement of commercial production Pacific North West will make cash payments of $250,000 per annum. Upon receipt of the feasibility study, Calista will have 180 days in which to elect to acquire up to 15 percent but no less than 5 percent operating interest in the project.

Calista shall then pay the joint venture an initial contribution of 200 percent of the agreed-upon pro-rata portion of exploration costs incurred by Pacific North West. Pacific North West will pay a net smelter return royalty to Calista of 1.5 percent from the commencement of commercial production until the payment back of all capital expenditures or five years, whichever is the shorter; thereafter the royalty shall be tied to the price of platinum.

Full Metal Minerals has optioned its Kamishak copper-gold project to Alaska newcomer Andover Ventures Inc. Andover has the option to earn a 60 percent interest in the property by incurring exploration expenditures of $2 million over four years including $300,000 during 2006. Andover must also make cash payments totaling $80,000 and issue 525,000 shares over the four year option term.

Full Metal will manage the exploration program for a 10 percent management fee.

The 2006 program will consist of a minimum 750 meters of diamond drilling and additional surface exploration.

The primary target is an intrusive-related breccia pipe hosting copper-gold mineralization. A previous operator completed 17 shallow core holes in the early 1990s in one of the two breccia zones. Highlights of this drilling include: 50.0 meters of 1.32 grams of gold per tonne and 0.22 percent copper, 21.3 meters of 0.85 grams of gold per tonne and 1.08 percent copper and 3.05 meters of 12.6 grams of gold per tonne and 0.49 percent copper.

Both disseminated and breccia pipe copper-gold mineralization consisting of chalcopyrite, pyrite and magnetite was discovered. In 2005 mapping and sampling completed by Full Metal identified extensions to the breccia to the south. Interpretation of the historic drilling suggests that the breccia is open for expansion to the west, east and at depth.

Welcome to Alaska Andover Ventures!

Interior Alaska

Kinross Gold announced year-end 2005 production results from its Fort Knox mine near Fairbanks. For 2005 the company produced 329,320 ounces of gold vs. 338,334 ounces produced during 2004.

Production in 2005 decreased by 3 percent due to lower grade and mill throughput, which was partially offset by a higher recovery. The lower grade in 2005 was the result of the suspension of production at the True North deposit in 2004. The lower mill throughput was the result of processing the harder Fort Knox ore compared with the blended ore from True North and Fort Knox for much of the prior year. Production for 2006 is forecast to be lower than 2005, with improved recovery rates expected to be offset by lower grades.

Rimfire Minerals Corp. announced that AngloGold Ashanti has relinquished its interest in Rimfire's Eagle and ER properties in the Goodpaster District in return for a 2 percent net smelter return royalty on each property. Half of the Eagle net smelter return royalty can be purchased for $1 million and half of the ER net smelter return royalty can be purchased for US$2 million. The Eagle and ER comprise important parts of Rimfire's 182,800-acre Goodpaster District landholding.

Alaska Range

Full Metal Minerals announced details of its 2006 exploration program for the 100 percent owned Lucky Shot project north of Anchorage.

The company plans to drill a minimum of 10,000 meters in approximately 60 diamond drill holes designed to delineate the Lucky Shot shear in the vicinity of the 2005 drilling, The objective will be production of a Canadian-exchange compliant resource estimate and expansion of mineralization to the west and northwest. Drill holes completed by Full Metal as well as historic drill holes have all intersected the Lucky Shot Shear approximately 250 meter up-dip of the historic workings and 250 meters along strike.

Additionally, other structures will be drill tested, including: the Dewitt Vein, Hope Vein and Nippon Vein. The company also will commence environmental baseline and engineering studies.

Golconda Resources said four holes were completed in early 2006 at its Shulin Lake diamond project west of Talkeetna. Two holes went through 200 feet of volcanic ash into underlying sandstone. The third hole caved in and was abandoned at 313 feet still an unconsolidated sand, gravel and boulders.

A layer of welded tuff, a rock type which has never been encountered before, was encountered in this hole. The tuff unit suggests the close proximity of the volcanic vent which produced this unit. Hole four caved in and was abandoned at 200 feet depth. Samples from the volcanics in Hole No. 3 will be tested for diamonds and indicator minerals.

Alaska newcomer Brett Resources Inc. has staked the historic Coal Creek tin-silver prospect in the southern Alaska Range.

Previous work by Houston International Minerals Corp. and Billiton Exploration included 42 diamond drill holes to depths of up to 800 feet. These efforts resulted in an inferred resource estimate of 5 million tons at a grade of 0.27 percent tin with significant silver credits along with possible fluorine, zinc and tungsten credits. Intercepts such as 0.25 percent tin with 16 grams of silver per tonne over 140 feet are reported as typical of the resource drilling.

The potential also exists for defining smaller, higher-grade resources in nearby skarn deposits. Preliminary metallurgical analysis of selected core samples indicated that the tin mineralization had good potential for the production of a high-grade tin concentrate. A program of re-sampling core and further data recovery and assembly is planned for this winter, to be followed by an early spring schedule of prospecting, geochemical sampling, and mapping.

Welcome to Alaska Brett Resources!

Northern Alaska

Little Squaw Gold Mining has mobilized 67 tons of gear over winter trails and is commencing its planned $1.7 million 2006 exploration program at the Little Squaw gold project in the Brooks Range. The planned program includes more than 10,000 feet of reverse circulation drilling in 30 or more holes on at least 10 gold prospects.

Southeast Alaska

The best news of the last month was that Coeur d'Alene Mines announced that the U.S. Army Corps of Engineers reinstated its permits for its Kensington gold project near Juneau. The permit pertains to the tailings disposal site originally approved by the Army Corps of Engineers and challenged by local and national groups concerned over the tailings disposal site. The company indicated that they intend to commence full scale construction activities immediately.

Other

It's rant and rave time again! The Fraser Institute Annual Survey of Mining Companies was published recently and Alaska's position inexplicably shifted again. As you may recall, last year's report hammered Alaska. This year's report elevated us to lofty company in some areas and bashed us in others.

The survey represents responses from 322 of 1,435 companies that were sent questionnaires in 64 political jurisdictions around the globe.

In the Policy Potential survey Alaska ranked 13th of 64, a drastic improvement over the 34th place showing (of 64 spots) in last year's survey.

The Policy Potential Index is a composite index that measures the effects on exploration of government policies including uncertainty concerning the administration, interpretation, and enforcement of existing regulations; environmental regulations; regulatory duplication and inconsistencies; taxation; uncertainty concerning Native land claims and protected areas; infrastructure; socioeconomic agreements; political stability; labor issues; geological database; and security.

You may ask what it is that has changed so drastically in the last year to alter our standing and I would respond "beats me!"

In the Current Mineral Potential Index (assumes current regulatory and land use restrictions) Alaska improved to 34th place vs. last year's dismal 55th place finish. Unfortunately we are still behind places like Burkina Faso, Turkey, Kazakhstan and Russia.

Again you may ask what it is that has changed so drastically in the last year to alter our standing and I would respond again "beats me!"

In the Best Practices Potential Index, which gauges a jurisdiction assuming best industry practices are in place in a jurisdiction, Alaska dropped a surprising 11 places to 14th place vs. our stellar third place finish last year.

Yet again you may ask what it is that has changed so drastically in the last year to alter our standing and, yet again, I would respond "beats me!"

As in the past, I don't know anyone who is working in Alaska who has filled out one of these questionnaires but there must be somebody.

If you have filled out the questionnaire, contact Steve Borell at the Alaska Miners Association ([email protected]) and let him know.